A Human Resource Management System (HRMS) is a type of software that combines a number of systems and processes to ensure the easy management of human resources, business processes, and data. HRMS software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration, time and attendance, employee performance management, and tracking competency and training records. The software ensures everyday human resources processes are manageable and easy to access, and it merges human resources as a discipline and its basic HR activities and processes with the information technology field.
An HRMS enables a company to manage human resources and related processes throughout the employee lifecycle. It can perform a variety of functions including organizing and managing employee details and organizational information of a business, making it easily accessible. The HR management module is a component covering many other HR aspects from application to retirement. The system records basic demographic and address data, selection, training and development, capabilities and skills management, compensation planning records, and other related activities.
HRMS software is also interchangeably called HRMIS, HRM, core HR, and HR software. The Human Capital Management system (HCM) focuses on strategic HR functions. A core HRIS function was electronic recording and management of employee records. Thus, HRIS is the acronym many HR professionals use to describe when human resources records, processes, and reporting become electronic through the use of software. As technology evolved and the system expanded beyond keeping employee records, HRIS became known as HRMS.
The HRMS market is highly fragmented and can be overwhelming, with over 700 companies that provide human resources management systems. When choosing an HRMS, it is important to weigh the options carefully and take advantage of free trials or customized training sessions to ensure that the HRMS software that you choose offers the right solution for your organization.
In summary, an HRMS is a suite of software applications used to manage human resources and related processes throughout the employee lifecycle. It combines a number of systems and processes to ensure the easy management of human resources, business processes, and data. The software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration, time and attendance, employee performance management, and tracking competency and training records.
